HUD AWARDS $13.3 MILLION TO BRING JOBS, REVITALIZE ‘BROWNFIELDS’ IN SIX CITIES

WASHINGTON, DC – September 8, 2011 – (RealEstateRama) — In six cities across the country, the U.S. Department of Housing and Urban Development (HUD) is awarding $13.3 million to stimulate job growth and revitalize unproductive industrial areas known as ‘brownfields.’ The grants announced today, combined with an addition $35 million in federal loan guarantees, will generate total public and private investment in these areas to more than $166 million.

“These grants, and the other investments they generate, will not only help redevelop environmentally distressed areas in these cities, they’ll put people to work!” said HUD Secretary Donovan. “This is a win-win for these cities. The funding we announce today creates jobs while reversing years of neglect in areas that are ripe for economic development and even more job growth in the future.”

HUD is announcing the following grants:

City

State

Project Name

Grant Amount

Santa Rosa

CA

New Railroad Square

$1,500,000

Taunton

MA

Fairfax Gardens

$1,000,000

Cleveland

OH

Warner and Swasey Facility

$3,000,000

Toledo

OH

Knapps Centre

$2,000,000

Philadelphia

PA

Edison Square

$1,250,000

Philadelphia

PA

Bakers Centre

$3,000,000

Ranson

WV

Powhatan Place Town Center

$1,500,000

Often perceived as unproductive eyesores in their communities, brownfields hold tremendous potential as sites for community revitalization. Many of these brownfield sites are strategically located in or around key areas and were, in many cases, the economic centers of their communities. Redevelopment of these sites is both a challenge and an opportunity and returning them to productive use can serve as a catalyst for local economic recovery.

These six cities will amplify the grants they receive today through HUD’s Section 108 Loan Guarantee Assistance Program which enables local governments to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to secure private investment in the projects and catalyze markets for continued growth in affected communities and businesses.

Donovan added, “These are tough times for cities looking to invest in growth-oriented development and to kick start their economies. It’s our job to help them in any way we can as we focus on job growth for those invested in remaking their home towns.”

The Following are summaries of the projects that received BEDI funds:

The City of Toledo, Ohio will receive a BEDI grant of $2 million and a Section 108 Loan for $10 million for the Knapps Centre Development. This mixed-use project will revitalize the former Owens Corning building and create 140,371 square feet of office space on 11 floors, a 96-room Marriott Courtyard on seven floors, and 81 apartments on nine floors, with retail and restaurants in the lobby area. The building is a significant landmark, designed by the architecture firm of Harrison and Abramowitz, which also designed the United Nations headquarters. This project will create 368 permanent jobs. The BEDI will leverage $6.4 million in other funds already committed to the project. The total project cost is $29.4 million.

The City of Santa Rosa, California will receive a BEDI grant of $1.5 million and apply for a Section 108 Loan for $5.6 million for the first phase of a three phase transit oriented development called New Railroad Square. The project will develop a Club One Health facility within the historic walls of the 1908 Santa Rosa Cannery. It is projected that the health club will generate 232 full time positions. The BEDI will leverage $779,000 in other funds already committed to the project. The total project cost is $19.9 million.

The City of Cleveland, Ohio will receive a BEDI grant of $3 million and a Section 108 Loan for $10 million for the cleanup and redevelopment of the former Warner and Swasey Facility. The project will transform the property into over 180,000 square feet of office, lab, warehouse and light manufacturing and post incubator space in support of the Health-Tech Corridor. HUD funding will result in the creation of up to 360 permanent full time equivalent positions. The total project cost is estimated to be more than $19 million.

The City of Ranson, West Virginia will receive a BEDI grant of $1.5 million and a Section 108 Loan for $3 million to redevelop the former Kiddie Fire Fighting foundry. The project is part of the Obama Administration’s Partnership for Sustainable Communities and will prepare a 6-acre site for development of an anchor building in the Powhatan Place Town Center project, by demolishing dilapidated buildings and remediating environmental contamination. This project will create 150 jobs in downtown Ranson. Total project cost is $7.8 million.

The City of Philadelphia, Pennsylvania will receive a BEDI grant of $1.25 million and will apply for a Section 108 Loan for $1.75 million for the first phase of the Edison Square Project. The project entails demolishing a high school that has been vacant for more than 9 years, and construction of a retail center. Phase one of the project will include a grocery store, stores selling electronics and general merchandise, and restaurants. The second phase of the project will be an affordable housing development. The project will create 100 permanent full-time jobs in a community where poverty and unemployment are currently more than twice the national rates. The total project cost is approximately $11 million.

The City of Philadelphia, Pennsylvania will receive a BEDI grant of $3 million and will apply for a Section 108 Loan for $3 million for the Bakers Centre Project. The project will involve new construction of a 219,000 square foot community shopping center anchored by a supermarket, on a 30-acre parcel vacated by Tasty Baking. This development addresses community needs in a “food desert” and will also include benefits such as a preventive-care health clinic and credit union. It is projected that this project will create 650 permanent jobs. Unemployment and poverty levels in the surrounding community are currently more than twice the national rates. The BEDI will leverage $12 million in other funds already committed to the project. The total project cost is approximately $53 million.

The City of Taunton, Massachusetts will receive a BEDI grant of $1 million and will apply for a Section 108 Loan for $2 million for the remediation of a vacant parcel as part of Fairfax Gardens, a transit-oriented mixed income housing project. The project will create 86 jobs of which 67 – more than the required 51% – will benefit low- and moderate income persons in the project area. The BEDI will leverage $8.3 million in other funds already committed to the project. The total project cost is $26 million.

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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.govand http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

U.S. Department of Housing and Urban Development (HUD) is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws.

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